Multiple Investor Lawsuits Target Monday.com Over Securities Exchange Act Violations

When monday.com released its fourth-quarter and full-year 2025 financial results on February 9, 2026, it revealed it was rescinding its $1.8 billion 2027 revenue target and guiding for a significant deceleration in top-line growth. Its stock fell $20.37, or 20.8%, to close at $77.63 per share that day. Six weeks later, the lawsuits have arrived in force.

Robbins Geller Rudman & Dowd LLP announced the monday.com class action lawsuit captioned Potter v. monday.com Ltd., No. 26-cv-01956, pending in the Southern District of New York, which seeks to represent purchasers or acquirers of monday.com Ltd. (NASDAQ: MNDY) common stock and charges monday.com as well as certain of monday.com's top executive officers with violations of the Securities Exchange Act of 1934.

Robbins Geller was hardly alone. Bernstein Liebhard LLP announced that a shareholder had filed a securities class action lawsuit on behalf of investors who purchased or acquired monday.com common stock between September 17, 2025, and February 6, 2026. Glancy Prongay Wolke & Rotter LLP also reminded investors of the upcoming May 11, 2026 deadline to file a lead plaintiff motion in the same class action. Kessler Topaz Meltzer & Check, LLP similarly informed investors that a securities fraud class action had been filed covering the same class period. The flurry of announcements across the week of March 19–25, 2026 underscores how quickly plaintiff firms mobilized around the February earnings disclosure.

The central allegation across the filings is that monday.com and certain top officers misled investors about the durability of the company's growth trajectory. The complaint alleges that throughout the class period, defendants made materially false and/or misleading statements and failed to disclose that the company was seeing new customer growth decelerating, weaker expansion within existing accounts, and longer enterprise sales cycles, making monday.com's $1.8 billion 2027 target increasingly unlikely to be met.

The pivot on February 9 was stark. During the earnings call, monday.com disclosed that "we will no longer be discussing our previously provided 2027 targets, but we'll be centering our discussion on our 2026 outlook, which reflects the continued momentum we see across our AI work platform, new product introductions and upmarket sales motion." The company issued 2026 revenue guidance of only $1.452 billion to $1.462 billion, representing 18% to 19% growth, a material deceleration from the trajectory required to reach $1.8 billion by 2027.

For employees holding MNDY equity, the sequence is particularly sharp. On November 10, 2025, monday.com released its third-quarter 2025 results, but the company maintained it was "going to be $1.8 billion by fiscal year '27." On that news, the stock fell $23.38, or 12.3%, to close at $166.21 per share. Then the February 9 earnings report pushed the stock from $98 to $77.63, a decline of approximately 21%. The two-step drop wiped out a substantial portion of the share price that underpins stock-based compensation across monday.com's roughly 2,000-person workforce.

The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, alleging that the company presented its $1.8 billion fiscal 2027 revenue target as a reliable baseline projection while internal trends already signaled that the target was at risk.

Investors have until May 11, 2026 to file for lead plaintiff status, a deadline set by the court. Monday.com has not issued a public response to the lawsuits, and the company's named executive officers have not been identified in publicly available excerpts of the complaint. The full officer list and class period boundaries can be confirmed through the S.D.N.Y. docket at case number 26-cv-01956.